Generation Z, ie people born roughly between 1997 and 2012, are entering adult and active life in a challenging economic period. Although older generations often claim that young people just need to work harder and save, the numbers and the reality show otherwise.
Rising housing costs
For young people, buying their own home is becoming less and less affordable. While they are for the generation.
According to studies, only 15% of Generation Z expect to be able to buy their own house or house within the next five years. So most young people have to settle for expensive rent, which greatly reduces their savings opportunities.
Inflation and stagnant wages
Following the COVID-19 pandemic, there has been a rapid increase in inflation, which means that the prices of basic goods and services are rising, while wages are not growing at the same rate. Slovakia, like other countries, saw a sharp rise in food and energy prices. Young people just entering the labor market often do not have enough income to cover all their expenses.
A full-time job is no longer enough. Many are looking for side jobs or part-time jobs to meet basic needs. Even so, they often dip into their savings or live paycheck to paycheck.
Effect of education and career decision
Generation Z has largely opted for higher education, often with the goal of getting a better paying job. However, reality shows that a university degree does not guarantee success. In Slovakia, many graduates have problems entering the labor market, especially in areas where there are many applicants.
While interest in technical and natural sciences is growing, demand is declining for traditional humanities and less desirable majors. This can result in many graduates ending up in positions that do not match their qualifications and, therefore, their salary expectations.
Work and satisfaction with it
Low job satisfaction is another important phenomenon. Only 44% of young Gen Zers say they are satisfied with their jobs, significantly less than older generations. “Leaving Silent” a “Lowest Monday” are terms that are becoming popular. Young people often do the least they can to maintain their mental health and avoid burnout.
These attitudes may be due to a decline in work-life balance, pressure to perform, and low satisfaction with working conditions. However, it is unfair to consider this as a lack of work ethic. Young people simply refuse to work in an environment where they don’t feel respected and fairly valued.
Debt and financial problems
Generation Z’s debt is growing the fastest of any generation. In Slovakia, young people often have mortgages or consumer loans to meet basic needs. As interest rates rise, these debts become more difficult to repay, causing additional financial stress.
One of the reasons is lack of financial literacy. Many young people do not know how to manage their finances effectively, invest or save, which prevents them from achieving financial stability.
Hope for improvement
Despite all these problems, there are some benefits for Generation Z. Thanks to technology, they have access to information and business opportunities that older generations did not have. Many focus on side projects, freelancing or starting their own business. These activities can help them build financial independence and gain more control over their future.
2024-11-15 11:00:00
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